Thursday, August 30, 2007

Ciena (CIEN) earnings strong ; stock up 5% premarket

Posted by TraderMark at 7:51 AM TweetThis
Ciena (CIEN) earnings look strong on first glance

Expectations were $203M and $0.31 EPS

Numbers came in at @ $205M, and $0.41 EPS. Nice.

Important to me is the gross margin expansion: 47.7% overall (vs 42.3% last quarter)
Product gross margin: 53.7% (Ciena also does services which drags down their overall gross margin), up from 47.3% last quarter. This is important as the Juniper and Cisco's are in the 60%+ level gross margin, so Ciena is making serious strides to getting their product margins to a comparable level. Pricing power anyone?

Everything looks great on first glance. Did I mention networking is back?

Long Ciena in fund; no personal positions

Posted by TraderMark at 7:51 AM

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